Kaldalón (KALD) H2 2025 earnings summary

Executive summary

• Operating income increased by 24% year-over-year, maintaining a 78% operating margin.

• Achieved strong operational performance in 2025, meeting ambitious growth targets for 2026.

• Property portfolio reached ISK 85 billion, with a 97.6% occupancy rate.

• Cash flow from operations rose by 28% year-over-year, reaching ISK 2,711 million.

• Transitioned to slower, sustainable growth while pursuing market opportunities.

Financial highlights

• Rental income and operating profit before revaluation increased by 24% year-over-year, outpacing inflation.

• Operating profit before revaluation was ISK 4,387 million, with a 78% margin.

• Net profit for 2025 was ISK 2,837 million, down from ISK 3,231 million in 2024.

• Total assets increased to ISK 86.4 billion, with investment properties valued at ISK 85 billion.

• Earnings per share (diluted) were ISK 2.54, down from ISK 2.81 year-over-year.

Outlook and guidance

• 2026 rental income is projected at ISK 6,200–6,350 million, with operating profit before revaluation at ISK 4,860–5,030 million.

• Forecast assumes 4.3% inflation and stable occupancy, excluding pending acquisitions.

• Dividend payout ratio is expected to increase, targeting 20–40% in 2026 and 50–75% from 2028 onward.

• High occupancy and strong demand for commercial properties expected to continue.

• The Fasteignafélag Íslands acquisition, if completed, would add ISK 1,120 million in annual revenue and ISK 920 million in operating profit at full occupancy.